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  • Customer Relationship Management and Organizational Performance: a Survey of Selected Private Hospitals in Ogun State, Nigeria

    1Onu, C. A, 2 Osoko, A. O. & 3Akinlabi, H. 1,2&3

    Department of Business Administration,

    Babcock University,

    Ilishan-Remo Ogun State

    A b s t r a c t

    his study investigated effect of customer relationship Tmanagement on organizational performance in selected private hospitals in Ogun state, Nigeria. This research work deals with four objectives and data was gathered to answer the research questions:- How trust influences customer loyalty; relationship commitment affects customer retention; service quality such as tangibility, reliability, responsiveness, assurance and empathy influences on customer satisfaction; and customer knowledge management affects customer citizenship behaviour. The researchers tested four null hypotheses in order to make decisions either to accepting or rejecting the effects of four independent variables on each of the four dependent variables. The study employed a survey research design in selected private hospitals in Ogun state, Nigeria. The selected private hospitals were:-Royal Cottage Hospital, Amazing Grace Hospital, Cornerstone Hospital, and First Alpha Medical Hospital. The population for the study were the registered adult patients of the four (4) selected registered private hospitals from the four main divisions of Ogun State which includes; Remo, Ijebu, Yewa and Egba. The total number of registered adult patients of the selected private hospitals altogether was 30,667. Using a purposive sampling and simple random sampling design, a sample size of 395with addition of a 30% safeguard against unreturned questionnaires making 513 was employed for the study. The study employed a well-structured questionnaire for gathering primary data and both descriptive and inferential statistical analysis techniques were employed to test the four hypotheses of the study. The study concluded that trust had a significant effect on customer loyalty to the private hospitals, there is a relationship between relationship commitment and customer retention, service quality had a significant effect on customer satisfaction, and customer knowledge management had a significant effect on customer citizenship behaviour in the selected private hospitals. The study recommended that management and staff of private hospitals in Nigeria should ensure that they build in trust, reliance and dependability into what they do in order to ensure that their patients become loyal to them. Also, there is need for relationships to be enhanced between the hospitals and their patients. The management of the hospitals can decide to give discounts to patients based on different group categories such as: staff of a particular organization, family based considerations and even church based. The service delivered by the hospitals should be of enhanced quality. Finally, patient knowledge should be managed effectively in the organization, their birth dates, anniversaries, day they entered the hospital and the frequency of visits.






    performance, Private

    hospitals, Ogun state,


    Corresponding Author:

    Onu, C. A,

    Vol. 5, No. 1

    March, 2018International Journal of Innovative Research in Social Sciences and Strategic Management Techniques | IJIRSSSMT

    ISSN Print: 2465-728X | ISSN Online: 2467-8155

    201 | Page

  • Background to the Study Customer Relationship Management (CRM) is a method of understanding the customer behavior through intense communication with him in order to improve the performance which is represented in attracting the customer, keeping him and increasing his loyalty and profitability. Recently, it has been observed that health care industry has become globally due to the increased concerns regarding some medical errors, medical costs and patient safety (Olden & McCaughrin, 2007; Stock, McFadden, & Gowen, 2007). However, the health-care sector in Nigeria could be assessed by the availability of current facilities, technology support as well as performance of employees in the hospitals. The private long-term healthcare service industry in Nigeria has become increasingly competitive with the growth of competing community- based services as facilities have become increasingly diverse in the array of specialized medical services they provide (Chahal, 2010). Hence, effective management of customer relationships becomes particularly important for long-term healthcare institutions in Nigeria in order to create value for their patients. It is clearly indicated by the ongoing importance of having satisfied patients and ongoing word-of- mouth recommendations as two effective forms of organizational promotion (Dahlgaard & Pettersen, 2011). Some private hospitals in Nigeria have adopted the CRM software application for positive organizational performance. For example, St. Nicholas Hospital Lagos State, Diamond Faith Hospital, Ogun State, First Consultant Hospital, Lagos State (Gbadeyan, 2010). Healthcare institutions with superior CRM have the qualities necessary to collect and store customer knowledge in their various hospitals. This will enable them track their customers' behavior to find out their customer's tastes, preferences as well as changing needs (Hung, Hung, Tsai, & Jiang, 2010).CRM enables healthcare providers to have more information relating to their patients so as to find means of assisting them to support development of appropriate care adjustments (Benz & Paddison, 2008).

    Statement of the Problem The lack of government policy concerning the implementation of Customer relationship management in health care sector exists in Nigeria. As a result of the lack of strategic policies have lead to the poor acceptance of technology –based CRM in health care facilities all over Nigeria (Okeke, 2013). Also, Idowu, Adagunodo and Adedoyin (2014) assessed health care service delivery in Nigeria as being below international standards resulting due to poor condition of health care facilities and weak implementation of CRM in order to retrieve patients' information. Amaghionyeodiwe (2013) as well stated that the poor condition of health care facilities and information system continue to widen gap between the rich people and the poor people in Nigeria. Furthermore, trust, relationship commitment, service quality and customer knowledge management play some roles in the organizational performance of private hospitals. If these issues are not well understood and managed, it can lead to an ultimate wreckage of private hospitals in Nigeria.

    A relationship of trust exists when the patients believe in the hospital's reliability and integrity. Patients are always reluctant to trust private hospitals because they have the conception that private hospitals are prone to make mistakes on different issues. For instance, the importance of the effects drugs misuse by patients (Okeke, 2013). Barjaktarevic, (2008) also observed that lack of confidentiality for patient records in most of the hospitals in Nigeria may lead to mismanagement of data electronically. As a result of lack of trust, some

    202 | Page

    Customer Relationship Management and Organizational Performance: a Survey of Selected Private.. | pp. 201 - 224

  • patients tend to leave private hospitals for government hospitals which lead to a negative effect on the turnover of private hospitals and making some private hospitals to forcefully shut down (Hutchins, 2009).

    Nevertheless, a relationship commitment exists when a patient considers that the ongoing relationship with the healthcare service provider is sufficiently important to exert the necessary effort to maintain it or to invest in it a number of resources (Gounaris, 2010). A favourable relationship between private health care service providers (Hospitals) and patients not only enhances patients' satisfaction but also improves the quality of health (Almunawar & Anshari, 2012). Moreover, the private healthcare providers in Nigeria lack insights into reasons and motivations for maintaining the patients–hospital relationship (Gbadeyan, 2010). Anectodal reports have shown that private hospitals in Nigeria do not put in more efforts in maintaining the bond existing between them and their patients because, they believe that once the patients are being won, they do not need much efforts to keep them and less attention is being given to current patients unlike when they are trying to win new patients (Okogbule, 2014). This leads to CRM failure when patients do not feel any sense of belonging and leads to the patients switching to another hospital having a negative effect on the retention of patients in private hospitals by losing the patients to competitors.

    Also, there are some challenges experienced by patients in some private hospitals in Nigeria such as non-availability of resident doctors at specific private hospital, unprofessional behaviour or rudeness by some nurses at the hospitals and failed promises (Gbadeyan, 2010). All these culminate into poor customer knowledge. According to the World Health Organization (WHO), quality health care is seen as that care which consists of the proper performance according to standards. As such, the nature of services rendered in some Nigerian private hospitals is not in conformance to the defined standard by WHO.


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